IVA remortgage possibilities

An IVA (Individual Voluntary Arrangement) can make remortgaging feel uncertain. However, for many homeowners it’s still possible to refinance—whether that’s to secure a better deal, change the mortgage term, or restructure payments.

This guide explains how an IVA can affect your remortgage options and what usually matters most to lenders and your Insolvency Practitioner (IP).

What “remortgaging” means when you already have a mortgage

Remortgaging is applying for a new mortgage deal with a different lender (or a new deal with your existing lender) while keeping the same property. You may be:

• Switching to a new rate when your current deal ends
• Changing the mortgage term to alter monthly payments
• Raising additional funds (for example, for home improvements or to consolidate other debts)
• Moving to a different mortgage type (where available)

Because you’re replacing one mortgage agreement with another, the lender will review your affordability and overall risk.

How an IVA can affect your remortgage chances

An IVA is a formal, legally binding agreement to repay debts under an agreed plan. From a mortgage lender’s perspective, it can indicate that you’ve had financial difficulties in the past and may still be considered higher risk.

That said, the impact isn’t always the same for every situation. Lenders may consider factors such as:

• Whether the IVA is current or has been completed
• Your payment history under the IVA
• Your current income and household expenditure
• How much equity you have in the property
• The mortgage size and loan-to-value (LTV)

In practice, many borrowers find that their options are narrower while the IVA is active, but not necessarily closed.

Insolvency Practitioner (IP) permission for new credit

A key part of remortgaging with an IVA is that you may need permission from your Insolvency Practitioner (IP) to take on new credit.

Mortgage applications are credit agreements, so your IP will typically consider whether the proposed repayments are affordable and consistent with your IVA arrangement. If permission is granted, it can support the application process.

Because requirements can vary depending on the IVA terms and your circumstances, it’s important to treat IP permission as a core step—not an afterthought.

What lenders usually want to see

Even when an IVA is taken into account, lenders still focus heavily on affordability and stability. Common areas they assess include:

1) Affordability and repayment capacity

You’ll generally need to demonstrate that you can meet the mortgage payments reliably. Lenders may look at:

• Proof of income
• Regular outgoings
• Existing debt commitments
• Whether your budget has enough headroom if interest rates rise or expenses change

2) Consistency of payments

A lender may be more comfortable where there’s evidence of consistent payments—both in relation to the mortgage and, where relevant, the IVA plan.

3) Property value and loan-to-value (LTV)

Your equity position can matter. A lower LTV may improve the lender’s view of risk, particularly if the IVA has affected your credit profile.

4) Mortgage structure

Some mortgage types and features may be easier to match to your situation than others. For example, lenders may have different approaches to:

• Fixed vs variable rates
• Overpayment flexibility
• Term length
• Whether additional borrowing is acceptable

Remortgaging for different reasons: what changes

The reason for remortgaging can influence the options available.

Switching to a new deal

If you’re mainly trying to refinance to a more suitable rate or term, the application may be more straightforward than a plan involving extra borrowing.

Raising funds or consolidating debts

If you’re looking to release equity or consolidate other debts, lenders may scrutinise the overall affordability more closely. They’ll typically want to understand how the new mortgage fits your long-term financial plan.

Home improvements

Borrowing to fund improvements can be possible, but it still needs to fit within affordability checks and any constraints around credit while the IVA is active.

Practical preparation before you apply

While each lender has its own process, the following preparation can help you avoid delays:

• Speak to your IP early about whether you can apply and what information they need
• Gather evidence of income and regular expenses
• Review your current mortgage position (including payment history)
• Understand your property value so you have a realistic view of LTV
• Be clear about what you want from the remortgage (rate change, term change, additional borrowing)

How a specialist broker can help

Remortgaging with an IVA often requires a more tailored approach than standard applications. A specialist broker can help by:

• Identifying lenders and mortgage types that may be more likely to consider your circumstances
• Helping you present the application in a way that addresses the key points lenders assess
• Coordinating the information needed for affordability checks
• Supporting the overall process so you’re not left guessing about next steps

Key takeaways

• An IVA can reduce mortgage options, but it doesn’t automatically rule out remortgaging.
• Affordability, payment consistency, and property value (LTV) are usually central to lender decisions.
• Permission from your Insolvency Practitioner (IP) may be required before applying for a new mortgage.
• The best route depends on why you want to remortgage and how the new deal affects your monthly outgoings.

If you’re considering refinancing while your IVA is active, planning the process carefully—especially around IP permission and affordability evidence—can make a significant difference to how smoothly the application progresses.